Among the following, which would not be considered part of the investment component of GDP?
A)manufacturers' equipment
B)buying corporate stock
C)new houses
D)business structures

Question

Among the following, which would not be considered part of the investment component of GDP?
A)manufacturers' equipment 
B)buying corporate stock 
C)new houses 
D)business structures

Quizplus · Accepted Answer

Buying corporate stock does not count as an investment in the sense of contributing to GDP, as it represents only a transfer of ownership of existing assets and does not lead to the creation of new capital goods or productive capacity. On the other hand, manufacturers' equipment, business structures, and new houses all represent physical assets that are used in the production process and add to the economy's stock of capital, thus contributing to GDP via gross private domestic investment.

Among the Following, Which Would Not Be Considered Part of the Investment